TOKYO , Dec. 19 -- ( Kyodo ) _ The U.S. dollar stayed near a five-year high around the 104 yen line Thursday in Tokyo after having jumped there on the U.S. Federal Reserve's decision the previous day to begin cutting back on its stimulus. At 5 p.m. , the dollar fetched 103.96-97 yen compared with 104.23-33 yen in New York and 102.99-103.00 yen in Tokyo at 5 p.m. Wednesday . It moved between 103.77 yen and 104.37 yen during the day, changing hands most frequently at 104.12 yen . The euro was quoted at $1.3688-3689 and 142.30-34 yen against $1.3678-3688 and 142.79-89 yen in New York and $1.3770-3772 and 141.82-86 yen in Tokyo late Wednesday afternoon. The dollar climbed to 104.37 yen in the early morning in Tokyo , a high not seen since October 2008 , as market players saw the Fed's decision as supporting the view that the U.S. economy is making a steady recovery, dealers said. The U.S. currency eased somewhat against the yen later in the day, caught between selling for gains and year-end repatriation of foreign currency for the dollar, said Yuji Saito , director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo . At its two-day policy meeting through Wednesday, the Fed decided to trim its easing program from January, cutting $10 billion from its current $85 billion monthly asset purchases. It also decided to keep interest rates near zero. "(The decision) swept away growing uncertainty over the outlook for U.S. monetary policy, leading to a risk-taking mood and yen selling, as it was difficult for market players to move aggressively before the announcement," said Yuzo Sakai , manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow . However, concerns remain that tapering will have the effect of draining funds from emerging markets into more developed ones. The Bank of Japan is holding its own two-day policy meeting through Friday. It is expected to keep unchanged its ultraeasy monetary policy in contrast to the Fed's decision, setting the stage for the dollar to climb further. The euro, which also rose to its highest level against the yen since October 2008 in overnight New York trading, eased against the Japanese currency on selling to lock in gains and the common currency's weakness against the dollar.
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